Australian Dairy Corporation

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The Dairy Industry Adjustment Act 2000 allocates the Australian Dairy Corporation
two principal roles in relation to the Dairy Structural Adjustment Program Scheme.

The first of these roles is to make Dairy Structural Adjustment Program payments to eligible dairy producers as directed by the Authority.

The Corporation’s second major role is to provide reasonable resources and facilities to enable the Authority to perform its legislative functions. The respective roles and responsibilities of the two agencies are set out in a formal service agreement. The Authority and Corporation met regularly during the year to monitor progress against this agreement. The information exchanges provided at these meetings were an essential component of each agencies’ corporate governance procedures regarding the operation of the Dairy Structural Adjustment Program Scheme.

The Corporation’s early work with the Authority centred on the design and development of information documents and application forms, and the provision of computer-based systems for determining individual entitlements under the Dairy Structural Adjustment Program Scheme.

In the first half of 2000, the Corporation developed a comprehensive database of milk production records. It also identified modifications to raw data records that would be necessary to align individual farm enterprise records with the statutory requirements of the Dairy Structural Adjustment Program Scheme. Corporation staff then worked closely with the Authority to appoint and manage the work of independent consultants in developing computer-based systems that would enable the Authority to:

• identify potential Dairy Structural Adjustment Program applicants;
• invite applications for payments;
• process all applications received;
• correctly determine individual entity entitlements; and
• establish a register of individual entitlements under the Scheme.

In some areas, the Corporation managed these external contracts directly on behalf
of the Authority. In others, the Corporation and Authority jointly managed the delivery
of specified services. Corporation staff also provided technical input and advice to the Authority on the calculation of individual entitlements across various farm enterprise structures and state-based regulatory arrangements. This work was designed to ensure that the Authority’s calculated entitlements appropriately aligned with the provisions of the Dairy Structural Adjustment Program Scheme.

As part of this process the Corporation provided the Authority and its staff with computer and IT support services to facilitate the effective processing and administration of documentation.

During the year the Corporation placed a number of staff on secondment to the Authority, both on a full-time and part-time basis.

In addition, Corporation staff provided regular accounting and financial support to the Authority to enable regular reviews of progress against agreed budget targets. Corporation staff were closely involved with the Authority in establishing forward budget plans for those elements of the Dairy Structural Adjustment Fund that are relevant to the Authority’s activities. The Corporation and the Authority also liaised regularly during the year over planned Dairy Structural Adjustment Program payment schedules. Corporation staff provided significant human resource and organisational development support for the Authority during the year. This role included assistance in office location, staff training, the management of staff salary, leave and superannuation provisions and the recruitment and management of temporary staff to cover variations in the Authority’s workload. The Corporation also effectively administered payments to contractors and consultants independently employed by the Authority during the year.

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